Common Factors in Financial Misreporting

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Common Factors in Financial Misreporting"

Transcription

1 Common Factors in Financial Misreporting SPECIAL GUEST Daniel Bens Associate Dean, MBA programs & Associate Professor, Accounting University of Arizona JANUARY 31, 2012

2 GOVERNANCE, RISK & COMPLIANCE Policy & Procedures Risk Management Audit & Assurance Reporting & Analytics Strategy, Performance & Objectives Compliance Management Event & Case Management Control, Monitoring & Enforcement EthicsPoint focus areas

3 ETHICSPOINT SOLUTIONS ENABLE CLIENTS TO: COLLECT MANAGE LEARN risk data from multiple sources reports and case information in a unified system from risk-related data; monitor program effectiveness

4 ETHICSPOINT SOLUTIONS ENABLE CLIENTS TO: ACT Achieve business objectives Protect your brand Make better decisions Build strong cultures Manage organizational risk Optimize economic & social value Increase stakeholder confidence

5 OBSERVATIONS OF HISTORICAL REPORTING INITIATIVES Facilities Internal Audit Human Resources Legal Corporate Compliance Info Technology Risk Managemen t Operations Health & Safety

6 FRAGMENTED OVERSIGHT Facilities Internal Audit Human Resources Legal Corporate Compliance Info Technology Risk Risk Corporate Management Managemen Compliance t Legal Internal Audit Operations HR Corporate Security Health Information & Safety Technology

7 RISK DATA BEING LOST OR SILOED 50% 100% 30% 20% Observed Unreported and lost Siloed or trapped Actual risk being addressed SOURCE: COMPLIANCE AND ETHICS LEADERSHIP COUNCIL

8 8 Education Ph.D. (Accounting) from Wharton (1999) MBA (Finance) from Indiana (1995) BS (Accounting) from Penn State (1990) Experience : CPA at PwC & Westinghouse : faculty at University of Chicago, Booth School of Business 2005-present: faculty at University of Arizona, Eller College 2009-present: Associate Dean & Director, MBA Programs Teaching MBA students, introductory and advanced financial accounting Ph.D. students, empirical research methodologies Research Voluntary disclosure, causes and effects Financial accounting impact on managerial decision making About the Presenter: Daniel Bens

9 9 Research Question Do managers alter their financial reporting strategy in the face of investment-related pressure? Understanding the answer to this question allows corporate stakeholders to identify situations where the firm may be at risk for overly aggressive accounting choices by management. Can signal to shareholders/boards to increase vigilance Can signal to accountants/auditors to step up monitoring

10 10 Earnings Management We know that managers, at times, mis-state earnings for private gain (evidence is observed both anecdotally and in academic research) Yet we also know that legal and reputational penalties are significant to deter the behavior Further, the accounting system itself tends to reveal any frauds in due course: accruals will reverse when cash flow does not appear

11 11 Earnings Management When earnings management does occur, what causes it in the first place? Stock market pressure might induce some of this behavior, but again, overstated accruals can unwind quickly Outsiders may not see all of the private contracts that the firm has that might be tied to earnings, which can provide incentives to cheat Employment/compensation contracts Regulatory contracts Debt covenants

12 12 Earnings Management Research is consistent in that when companies are at or near thresholds on the income statement or balance sheet that affect firm/manager wealth via contracts earnings management is more likely Research is much more mixed about the pressure provided by stock market pressure, even when the company executives are heavily laden with equity incentives in their pay

13 POLLING QUESTION How likely do you find that the pressure to achieve accounting targets includes managers to aggressively report earnings upwards?

14 14 Earnings Management Classic example of contracts that induced earnings management: Bausch & Lomb in the early 1990s External competitive pressures coupled with internal sales incentive pressures led firm to stuff the channel by forcing distributors to purchase excess inventory Trend was clear: sales increase, but ballooning receivables and cash flow that diverges from earnings Yet outsiders could not observe the pressure that sales force was under and their response to distributors This relates to our project, which is to try to identify a force that might put the firm at risk

15 15 Earnings Management

16 16 M&A Related Pressure Corporate acquisitions are one of the most significant decisions that managers will have to make Stock market gives instant assessment of the merits of the deal Lehn and Zhao (2006 Journal of Finance): probability of CEO turnover goes up following a poorly received acquisition Example: Quaker Oats stock experiences a -10% return when Snapple acquisition announced CEO fired within three years Avg. stock return at announcement for turnover sample: -2.27% Avg. stock return at announcement for non-turnover sample: -0.38% Correlation is also assessed in a regression framework with controls

17 17 Summary and Our Prediction Earnings management exists, but difficult to say for sure when it might occur CEOs making acquisitions that the stock market judges as poor deals face pressure to perform We examine whether earnings management is used to relieve this pressure, even if it only benefits management in the short run

18 18 Example: Rite Aid s acquisition of Thrifty PayLess Deal is announced on 10/14/1996 Stock return over the next two days: -6.6% Earnings are managed upward over the next three years using the following techniques, among others: Overstatement of vendor allowances to reduce COGS Capitalizing repairs and maintenance instead of expensing Shifting expenses to future periods when benefits currently consumed Manipulation of restructuring charges

19 19 Example: Rite Aid s acquisition of Thrifty PayLess

20 20 Sample M&As announced between 1996 and 2007 per the SDC database Acquirer is a US public company Acquirer has information on Compustat and CRSP Deal value disclosed in SDC is at least 5% of the acquirer s market capitalization Total number of observations = 2,293 deals Restatements from Audit Analytics Exclude restatements related to adoption of new accounting standards or methods, mergers, stock splits Exclude observations coded by Audit Analytics as clerical errors

21 21 Timeline

22 22 Later Years of Sample (post-2005)

23 23 Univariate Analysis: Table 3

24 POLLING QUESTION If earnings management does occur, do you believe those responsible are aware that accounting manipulations will have to reverse themselves in the future?

25 25 Model for Multivariate Analysis RESTATE = a 0 + a 1 *CAR_MA + a 2 *SIZEMV + a 3 *ROA + a 4 *BTM +a 5 *LEV + a 6 *STD_RET + a 7 *TARG_PUB + a 8 *TARG_DOM + a 9 *STOCK_MA + a 10 *DIVERS_MA + a 11 *DEAL_SIZE + a 12 *ICD + TIME_F_EFFECTS + IND_F_EFFECTS + ε Main variable of interest CAR_MA= the three-day cumulative abnormal return around the M&A announcement Expect a 1 < 0 Control for acquirer s characteristics and deal characteristics

26 26 Multivariate Analysis: Table 4

27 27 Economic Interpretation of Analyses Univariate analysis For the 25% of the sample with the lowest M&A announcement stock returns, the percentage with future accounting restatements is 18% For the remaining 75% of the sample, the percentage with future accounting restatements is 11-12% Multivariate analysis For entire sample, the probability of a future restatement is 13% Probability increases to 15% for a one standard deviation decrease in M&A announcement returns, after controlling for other determinants of restatements

28 28 Multivariate Analysis of Post-M&A Turnover The effect of post-m&a misreporting on CEO turnover following an unfavorably received M&A event.

29 29 Economic Interpretation of Turnover Analysis For the firms with lower M&A announcement returns, the probability of CEO turnover in the year following the announcement is significantly greater than zero (the negative CAR_MA) Yet this relationship goes away for the firm that manipulated the accounting numbers (the positive CAR_MA * RESTATE) Implication: the manipulation actually buys the manager some time until it is found out, which then ratchets up the probability of being fired

30 30 Summary of Project For firms with more negative M&A announcement returns, managers attempt to buy time by misstating financial statements (and issue management forecasts that are optimistic this is in the paper, not addressed today) Pressure leads to financial misreporting, even in a setting where the costs of biased reporting are high (i.e., likely to be fired when found out)

31 31 Takeaways for Managers There is no silver bullet to identify likely accounting manipulations Research has found that contracts tied explicitly to earnings or the balance sheet can induce earnings management Pressure from the stock market is much more intangible, but most would agree it has some effect on accounting choices We provide evidence that negative returns around significant corporate investments provide a signal to be on alert for aggressive reporting We encourage managers/compliance personnel to look for not only that signal, but other forms of pressure

32 32 ANY QUESTIONS

33 33 Contact Information Questions? Please contact Daniel Bens at: Address: Daniel A. Bens 210 McClelland Hall University of Arizona Tucson, AZ Web:

MBA IQ Course Syllabus

MBA IQ Course Syllabus MBA IQ Course Syllabus Module 1: General Management, Leadership, and Strategy Understand Scope & Nature of Corporate Strategies Understand Importance of Planning & Organizing Skills Understand Importance

More information

Accounting, M.S. About the Program. Admission Requirements and Deadlines. Program Requirements. Contacts. Department Web Address:

Accounting, M.S. About the Program. Admission Requirements and Deadlines. Program Requirements. Contacts. Department Web Address: Accounting, M.S. 1 Accounting, M.S. FOX SCHOOL OF BUSINESS AND MANAGEMENT (http://www.fox.temple.edu) About the Program Areas of Specialization: An optional concentration in Corporate Accounting is offered.

More information

The Perceived Earnings Quality Consequences of Announcements to Voluntarily Adopt the Fair Value Method of Accounting for Stock-Based Compensation

The Perceived Earnings Quality Consequences of Announcements to Voluntarily Adopt the Fair Value Method of Accounting for Stock-Based Compensation The Perceived Earnings Quality Consequences of Announcements to Voluntarily Adopt the Fair Value Method of Accounting for Stock-Based Compensation John D. Phillips* University of Connecticut Karen Teitel

More information

716 West Ave Austin, TX 78701-2727 USA

716 West Ave Austin, TX 78701-2727 USA How to Detect and Prevent Financial Statement Fraud GLOBAL HEADQUARTERS the gregor building 716 West Ave Austin, TX 78701-2727 USA VI. GENERAL TECHNIQUES FOR FINANCIAL STATEMENT ANALYSIS Financial Statement

More information

Chapter 3: Overview of Accounting Analysis

Chapter 3: Overview of Accounting Analysis Chapter 3: Overview of Accounting Analysis The Importance of Accounting Analysis Accounting practices govern the types of disclosures made in the financial statements. Understanding accounting allows the

More information

Financial Transactions and Fraud Schemes

Financial Transactions and Fraud Schemes Financial Transactions and Fraud Schemes Accounting Concepts 2013 Association of Certified Fraud Examiners, Inc. Accounting Basics Assets = Liabilities + Owners Equity Accounting Basics By definition,

More information

(Effective for audits of financial statements for periods beginning on or after December 15, 2009) CONTENTS

(Effective for audits of financial statements for periods beginning on or after December 15, 2009) CONTENTS INTERNATIONAL STANDARD ON 200 OVERALL OBJECTIVES OF THE INDEPENDENT AUDITOR AND THE CONDUCT OF AN AUDIT IN ACCORDANCE WITH INTERNATIONAL STANDARDS ON (Effective for audits of financial statements for periods

More information

INTERNATIONAL STANDARD ON AUDITING 800 SPECIAL CONSIDERATIONS AUDITS OF FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH SPECIAL PURPOSE FRAMEWORKS

INTERNATIONAL STANDARD ON AUDITING 800 SPECIAL CONSIDERATIONS AUDITS OF FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH SPECIAL PURPOSE FRAMEWORKS INTERNATIONAL STANDARD ON AUDITING 800 SPECIAL CONSIDERATIONS AUDITS OF FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH SPECIAL PURPOSE FRAMEWORKS (Effective for audits of financial statements for periods

More information

DST SYSTEMS, INC. ANNOUNCES THIRD QUARTER 2015 FINANCIAL RESULTS

DST SYSTEMS, INC. ANNOUNCES THIRD QUARTER 2015 FINANCIAL RESULTS ANNOUNCES THIRD QUARTER 2015 FINANCIAL RESULTS KANSAS CITY, MO - October 22, 2015 DST Systems, Inc. (NYSE: DST) reported consolidated net income of $75.1 million ($2.08 per diluted share) for the third

More information

INTERNATIONAL STANDARD ON AUDITING 450 EVALUATION OF MISSTATEMENTS IDENTIFIED DURING THE AUDIT

INTERNATIONAL STANDARD ON AUDITING 450 EVALUATION OF MISSTATEMENTS IDENTIFIED DURING THE AUDIT INTERNATIONAL STANDARD ON AUDITING 450 EVALUATION OF MISSTATEMENTS IDENTIFIED DURING THE AUDIT (Effective for audits of financial statements for periods beginning on or after December 15, 2009) CONTENTS

More information

INTERNATIONAL STANDARD ON AUDITING (UK AND IRELAND) 450 EVALUATION OF MISSTATEMENTS IDENTIFIED DURING THE AUDIT

INTERNATIONAL STANDARD ON AUDITING (UK AND IRELAND) 450 EVALUATION OF MISSTATEMENTS IDENTIFIED DURING THE AUDIT INTERNATIONAL STANDARD ON AUDITING (UK AND IRELAND) 450 EVALUATION OF MISSTATEMENTS IDENTIFIED DURING THE AUDIT (Effective for audits of financial statements for periods ending on or after 15 December

More information

http://www.procognis.com January 2005 Lynda Radke, CPA CFO, ProCognis, Inc. info@procognis.com Abstract 1. Planning for Sarbanes-Oxley 404 Compliance

http://www.procognis.com January 2005 Lynda Radke, CPA CFO, ProCognis, Inc. info@procognis.com Abstract 1. Planning for Sarbanes-Oxley 404 Compliance http://www.procognis.com January 2005 Sarbanes-Oxley Section 404 Planning and Documentation Complying with the Provisions of the new Law: Developing a Compliance Plan and Documenting Controls Abstract

More information

Socially Responsible Investment and Corporate Social Responsibility Literature Survey from Accounting and Finance Perspective

Socially Responsible Investment and Corporate Social Responsibility Literature Survey from Accounting and Finance Perspective Socially Responsible Investment and Corporate Social Responsibility Literature Survey from Accounting and Finance Perspective Dr. Haitian LU Associate Head, School of Accounting and Finance Deputy Director,

More information

The Information Content and Contracting Consequences of SFAS 141(R): The Case of Earnout Provisions

The Information Content and Contracting Consequences of SFAS 141(R): The Case of Earnout Provisions The Information Content and Contracting Consequences of SFAS 141(R): The Case of Earnout Provisions Brian Cadman David Eccles School of Business, University of Utah brian.cadman@business.utah.edu Richard

More information

Working Paper No. 51/00 Current Materiality Guidance for Auditors. Thomas E. McKee. Aasmund Eilifsen

Working Paper No. 51/00 Current Materiality Guidance for Auditors. Thomas E. McKee. Aasmund Eilifsen Working Paper No. 51/00 Current Materiality Guidance for Auditors By Thomas E. McKee Aasmund Eilifsen SNF-project No. 7844: «Finansregnskap, konkurs og revisjon The project is financed by the Norwegian

More information

A Two-step Representation of Accounting Measurement

A Two-step Representation of Accounting Measurement A Two-step Representation of Accounting Measurement 1 An incorrect belief Pingyang Gao The University of Chicago Booth School of Business November 27, 2012 How does accounting provide information? Empirically,

More information

The real value of corporate governance

The real value of corporate governance Volume 9 No. 1 The real value of corporate governance (c) Copyright 2007, The University of Auckland. Permission to make digital or hard copies of all or part of this work for personal or classroom use

More information

Verifone Reports Results for the Second Quarter of Fiscal 2016

Verifone Reports Results for the Second Quarter of Fiscal 2016 Verifone Reports Results for the Second Quarter of Fiscal 2016 SAN JOSE, Calif. (BUSINESS WIRE) Verifone (NYSE: PAY), a world leader in payments and commerce solutions, today announced financial results

More information

Guide to Internal Control Over Financial Reporting

Guide to Internal Control Over Financial Reporting Guide to Internal Control Over Financial Reporting The Center for Audit Quality prepared this Guide to provide an overview for the general public of internal control over financial reporting ( ICFR ).

More information

INTERNATIONAL STANDARD ON AUDITING (UK AND IRELAND) 200

INTERNATIONAL STANDARD ON AUDITING (UK AND IRELAND) 200 INTERNATIONAL STANDARD ON AUDITING (UK AND IRELAND) 200 OVERALL OBJECTIVES OF THE INDEPENDENT AUDITOR AND THE CONDUCT OF AN AUDIT IN ACCORDANCE WITH INTERNATIONAL STANDARDS ON AUDITING (UK AND IRELAND)

More information

Fraud Prevention & Detection

Fraud Prevention & Detection Fraud Prevention & Detection Dave Tate, CPA, Esq. http://davidtate.us tateatty@yahoo.com This discussion primarily pertains to financial statement fraud--that is, financial statements that contain intentionally,

More information

STUDY THE RELATIONSHIP BETWEEN INVESTMENT OPPORTUNITIES AND EARNINGS STABILITY OF FIRMS IN TEHRAN SECURITIES EXCHANGE

STUDY THE RELATIONSHIP BETWEEN INVESTMENT OPPORTUNITIES AND EARNINGS STABILITY OF FIRMS IN TEHRAN SECURITIES EXCHANGE 2014 Vol. 4 (S4), pp. 24482455/Parvin and Mehrdad STUDY THE RELATIONSHIP BETWEEN INVESTMENT OPPORTUNITIES AND EARNINGS STABILITY OF FIRMS IN TEHRAN SECURITIES EXCHANGE Parvin Nafei 1, 2 and *Mehrdad Ghanbari

More information

Intel Reports Fourth-Quarter and Annual Results

Intel Reports Fourth-Quarter and Annual Results Intel Corporation 2200 Mission College Blvd. P.O. Box 58119 Santa Clara, CA 95052-8119 CONTACTS: Reuben Gallegos Amy Kircos Investor Relations Media Relations 408-765-5374 480-552-8803 reuben.m.gallegos@intel.com

More information

Master of Science in Accounting Course Scheduling Guide 2010 2011

Master of Science in Accounting Course Scheduling Guide 2010 2011 Master of Science in Accounting Course Scheduling Guide 2010 2011 Updated: 10/06/2010 General Overview OVERVIEW The M.S. in Professional Accounting is a 30-credit degree program. More credits may be needed

More information

HOW TO DETECT AND PREVENT FINANCIAL STATEMENT FRAUD (SECOND EDITION) (NO. 99-5401)

HOW TO DETECT AND PREVENT FINANCIAL STATEMENT FRAUD (SECOND EDITION) (NO. 99-5401) HOW TO DETECT AND PREVENT FINANCIAL STATEMENT FRAUD (SECOND EDITION) (NO. 99-5401) VI. INVESTIGATION TECHNIQUES FOR FRAUDULENT FINANCIAL STATEMENT ALLEGATIONS Financial Statement Analysis Financial statement

More information

Outdoor Retailer Conference Financial Statement Fraud. August 2, 2010 Derk G. Rasmussen. www.sagefa.com

Outdoor Retailer Conference Financial Statement Fraud. August 2, 2010 Derk G. Rasmussen. www.sagefa.com Outdoor Retailer Conference Financial Statement Fraud August 2, 2010 Derk G. Rasmussen www.sagefa.com About Sage Forensic Accounting Sage Forensic Accounting quantifies damage claims in litigation, determines

More information

Last Year We Were Preparing for an IPO.. NOW WHAT? January 19, 2016

Last Year We Were Preparing for an IPO.. NOW WHAT? January 19, 2016 Last Year We Were Preparing for an IPO.. NOW WHAT? January 19, 2016 Last Year We Were Preparing for an IPO Now What? Page 2 Last Year We Were Preparing for an IPO Now What? Page 3 Last Year We Were Preparing

More information

Audit Risk and Materiality in Conducting an Audit

Audit Risk and Materiality in Conducting an Audit Audit Risk and Materiality in Conducting an Audit 1647 AU Section 312 Audit Risk and Materiality in Conducting an Audit (Supersedes SAS No. 47.) Source: SAS No. 107. See section 9312 for interpretations

More information

An Empirical Analysis of Insider Rates vs. Outsider Rates in Bank Lending

An Empirical Analysis of Insider Rates vs. Outsider Rates in Bank Lending An Empirical Analysis of Insider Rates vs. Outsider Rates in Bank Lending Lamont Black* Indiana University Federal Reserve Board of Governors November 2006 ABSTRACT: This paper analyzes empirically the

More information

Internet Appendix to. Why does the Option to Stock Volume Ratio Predict Stock Returns? Li Ge, Tse-Chun Lin, and Neil D. Pearson.

Internet Appendix to. Why does the Option to Stock Volume Ratio Predict Stock Returns? Li Ge, Tse-Chun Lin, and Neil D. Pearson. Internet Appendix to Why does the Option to Stock Volume Ratio Predict Stock Returns? Li Ge, Tse-Chun Lin, and Neil D. Pearson August 9, 2015 This Internet Appendix provides additional empirical results

More information

Issues Facing the Asset Management Industry. Navigating a Challenging Environment

Issues Facing the Asset Management Industry. Navigating a Challenging Environment Issues Facing the Asset Management Industry Navigating a Challenging Environment Top Issues Facing Asset Managers Primary challenges that Citi sees our asset manager clients facing Regulatory Complexity

More information

Financial Statement Fraud Schemes

Financial Statement Fraud Schemes Financial Statement Fraud Schemes Effective expert assistance whether in litigation support consulting, depositions, or prevention requires a thorough knowledge of the nature of financial statement fraud,

More information

Purpose Driven Performance

Purpose Driven Performance Discussion Paper June 2007 Purpose Driven Performance *John R. Grabski In recent years, academics and management consultants have argued the merit of the strategic management plan that is based upon the

More information

Mc Graw Hill Education

Mc Graw Hill Education Principles of Auditing & Other Assurance Services Twentieth Edition 0. Ray Whittington CIA, CMA, CPA DePaul University Kurt Pany CFE, CPA Arizona State University Mc Graw Hill Education Contents Preface

More information

CONTENTS. (Effective for engagements audits for periods beginning on or after December 15, 2009)

CONTENTS. (Effective for engagements audits for periods beginning on or after December 15, 2009) AGENDA ITEM 11-A (UPDATED) 1 INTERNATIONAL STANDARD ON AUDITING 800 (REVISED AND REDRAFTED) SPECIAL CONSIDERATIONS AUDITS OF FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH SPECIAL PURPOSE FRAMEWORKS

More information

Integrity Continuity: Avoiding and Surviving (Un)Ethical Disasters. Robert C. Chandler, Ph.D., Pepperdine University Malibu, California USA

Integrity Continuity: Avoiding and Surviving (Un)Ethical Disasters. Robert C. Chandler, Ph.D., Pepperdine University Malibu, California USA Integrity Continuity: Avoiding and Surviving (Un)Ethical Disasters Robert C. Chandler, Ph.D., Pepperdine University Malibu, California USA Changing our Minds It couldn t happen to us a false sense of security,

More information

University of Rhode Island Evening MBA Program - Course Descriptions

University of Rhode Island Evening MBA Program - Course Descriptions University of Rhode Island Evening MBA Program - Course Descriptions The following are the required courses in the Providence (Evening) MBA Program, followed by a listing of elective courses. Descriptions

More information

For personal use only

For personal use only Statement of Corporate Governance for the Year Ended 30 June 2015 This Corporate Governance Statement is current as at 1 September 2015 and has been approved by the Board of Equus Mining Limited ( the

More information

FREQUENTLY ASKED QUESTIONS ABOUT FORM 8- K

FREQUENTLY ASKED QUESTIONS ABOUT FORM 8- K FREQUENTLY ASKED QUESTIONS ABOUT FORM 8- K General Description and Summary of 8-K Items What is Form 8-K? Form 8-K is the form on which public companies report, on a current basis, the occurrence of significant

More information

PROFITCENTS ANALYTICAL PROCEDURES EXPECTED VALUE METHODOLOGY

PROFITCENTS ANALYTICAL PROCEDURES EXPECTED VALUE METHODOLOGY PROFITCENTS ANALYTICAL PROCEDURES EXPECTED VALUE METHODOLOGY INTRODUCTION This document includes an analysis of the projection methodology used in ProfitCents Analytical Procedures in calculating expectations

More information

Module # 2 Management/Key Employee Assessment

Module # 2 Management/Key Employee Assessment Module # 2 Management/Key Employee Assessment The management/key employee assessment questions are designed to assess the probability of a fraudulent event occurring within the organization based on: Internal

More information

Xudong Fu. Assistant Professor of Finance Department of Economics and Finance Southern Illinois University Edwardsville

Xudong Fu. Assistant Professor of Finance Department of Economics and Finance Southern Illinois University Edwardsville Xudong Fu Department of Economics and Finance Southern Illinois University Edwardsville Mailing address: E-mail: xfu@siue.edu Alumni Hall 3147 Cell: (205) 239-5671 Edwardsville, IL 62026 Office: (618)

More information

ENTERPRISE RISK MANAGEMENT FRAMEWORK

ENTERPRISE RISK MANAGEMENT FRAMEWORK ENTERPRISE RISK MANAGEMENT FRAMEWORK COVENANT HEALTH LEGAL & RISK MANAGEMENT CONTENTS 1.0 PURPOSE OF THE DOCUMENT... 3 2.0 INTRODUCTION AND OVERVIEW... 4 3.0 GOVERNANCE STRUCTURE AND ACCOUNTABILITY...

More information

UNIVERSITY OF NEBRASKA LINCOLN COLLEGE OF BUSINESS ADMINISTRATION NEW FACULTY

UNIVERSITY OF NEBRASKA LINCOLN COLLEGE OF BUSINESS ADMINISTRATION NEW FACULTY UNIVERSITY OF NEBRASKA LINCOLN COLLEGE OF BUSINESS ADMINISTRATION NEW FACULTY 2014 DONDE ASHMOS PLOWMAN James Jr. and Susan Stuart Endowed Dean College of Business Administration University of Nebraska

More information

Understanding Your Ethics & Code of Conduct Training Requirements. May 29, 2008

Understanding Your Ethics & Code of Conduct Training Requirements. May 29, 2008 Understanding Your Ethics & Code of Conduct Training Requirements May 29, 2008 Shanti Atkins, Esq. President & CEO of ELT. Specialist in online ethics and legal compliance training. Advises clients across

More information

Finance and Accounting Workshop for Non-Financial Managers

Finance and Accounting Workshop for Non-Financial Managers Finance and Accounting Workshop for Non-Financial Managers April 24-26, 2013, Wednesday-Friday IE Business School campus, Madrid, Spain www.ie.edu/internationalprograms business school Executive Education

More information

Aligning Compliance Program Priorities with Business Objectives

Aligning Compliance Program Priorities with Business Objectives Aligning Compliance Program Priorities with Business Objectives By Jay G. Martin Vice President, Chief Compliance Officer and Senior Deputy General Counsel Baker Hughes Incorporated CAIL Institute for

More information

Advisory Services. Financial. Business Risk. Administration. Understanding Creating Implementing

Advisory Services. Financial. Business Risk. Administration. Understanding Creating Implementing Advisory Services Financial. Business Risk. Administration. Understanding Creating Implementing Our Firm... Grant Thornton Advisory Services Al-Aiban & Al-Qatami Co. is a member firm incorporated with

More information

Master of Business Administration Program in the Faculty of Business Administration and Economics

Master of Business Administration Program in the Faculty of Business Administration and Economics Master of Business Administration Program in the Faculty of Business Administration and Economics The Faculty of Business Administration and Economics at Haigazian University offers a degree program leading

More information

Voluntary Disclosure during Credit Watches: Do Credit Rating Agencies Concern about Disclosure Quality?

Voluntary Disclosure during Credit Watches: Do Credit Rating Agencies Concern about Disclosure Quality? Voluntary Disclosure during Credit Watches: Do Credit Rating Agencies Concern about Disclosure Quality? Presented by Dr Kai Wai Hui Associate Professor Hong Kong University of Science and Technology #2012/13-13

More information

Board of Directors Code of Conduct - 2010

Board of Directors Code of Conduct - 2010 CMS Energy Corporation Consumers Energy Company Board of Directors Code of Conduct - 2010 The CMS Energy Corporation ( CMS Energy ) and Consumers Energy Company ( Consumers ) Boards of Directors (the Board

More information

Master of Business Administration Program in the Faculty of Business Administration and Economics

Master of Business Administration Program in the Faculty of Business Administration and Economics Master of Business Administration Program in the Faculty of Business Administration and Economics The Faculty of Business Administration and Economics at Haigazian University offers a degree program leading

More information

Understanding Financial Information for Bankruptcy Lawyers Understanding Financial Statements

Understanding Financial Information for Bankruptcy Lawyers Understanding Financial Statements Understanding Financial Information for Bankruptcy Lawyers Understanding Financial Statements In the United States, businesses generally present financial information in the form of financial statements

More information

Pursuit Management, Inc. dba: MobileSpike Technologies, Inc. Financial Statements and Independent Accountants Review Report December 31, 2015 and

Pursuit Management, Inc. dba: MobileSpike Technologies, Inc. Financial Statements and Independent Accountants Review Report December 31, 2015 and Financial Statements and Independent Accountants Review Report December 31, 2015 and 2014 Financial Statements Contents INDEPENDENT ACCOUNTANTS REVIEW REPORT 1 Page FINANCIAL STATEMENTS: Balance sheets

More information

COMMON MISSTATEMENTS IN THE FINANCIAL STATEMENTS OF LATVIAN COMPANIES. DO INVESTORS CONSIDER POSSIBLE FRAUD IN FINANCIAL DATA THEY ANALYZE?

COMMON MISSTATEMENTS IN THE FINANCIAL STATEMENTS OF LATVIAN COMPANIES. DO INVESTORS CONSIDER POSSIBLE FRAUD IN FINANCIAL DATA THEY ANALYZE? Bachelor Thesis COMMON MISSTATEMENTS IN THE FINANCIAL STATEMENTS OF LATVIAN COMPANIES. DO INVESTORS CONSIDER POSSIBLE FRAUD IN FINANCIAL DATA THEY ANALYZE? Author: Supervisor: Erki Usin March 2007 Riga

More information

Core Classes Course Title Start End

Core Classes Course Title Start End Core Classes Course Title Start End MBA516 BUSINESS ETHICS 1/14/2013 3/10/2013 MBA516 BUSINESS ETHICS 1/14/2013 3/10/2013 MBA516 BUSINESS ETHICS 2/11/2013 4/7/2013 MBA516 BUSINESS ETHICS 2/11/2013 4/7/2013

More information

Financial Reporting and External Audit

Financial Reporting and External Audit Financial Reporting and External Audit Professor David F. Larcker Corporate Governance Research Program Stanford Graduate School of Business Copyright 2011 by David F. Larcker and Brian Tayan. All rights

More information

NEW YORK UNIVERSITY Stern School of Business ACCT-UB.0001.06 Principles of Financial Accounting Tuesday & Thursday, 9:30 a.m. 10:45 p.m.

NEW YORK UNIVERSITY Stern School of Business ACCT-UB.0001.06 Principles of Financial Accounting Tuesday & Thursday, 9:30 a.m. 10:45 p.m. NEW YORK UNIVERSITY Stern School of Business ACCT-UB.0001.06 Principles of Financial Accounting Tuesday & Thursday, 9:30 a.m. 10:45 p.m. (Tisch LC-25) Professor: David M. Perkal E-mail: dperkal@stern.nyu.edu

More information

Plan for the audit of the 2011 financial statements

Plan for the audit of the 2011 financial statements INTERNATIONAL TRAINING CENTRE OF THE ILO Board of the Centre 73rd Session, Turin, 3-4 November 2011 CC 73/5/2 FOR INFORMATION FIFTH ITEM ON THE AGENDA Plan for the audit of the 2011 financial statements

More information

BROOKWOOD CHURCH. Financial Statements With Independent Auditors Report. Year Ended September 30, 2013 and Thirteen Months Ended September 30, 2012

BROOKWOOD CHURCH. Financial Statements With Independent Auditors Report. Year Ended September 30, 2013 and Thirteen Months Ended September 30, 2012 Financial Statements With Independent Auditors Report Year Ended September 30, 2013 and Thirteen Months Ended September 30, 2012 Table of Contents Independent Auditors Report 1 Financial Statements Statements

More information

Master of Science in Accounting Course Scheduling Guide 2014 2015

Master of Science in Accounting Course Scheduling Guide 2014 2015 Master of Science in Accounting Course Scheduling Guide 2014 2015 Updated: 1/24/2014 General Overview OVERVIEW The M.S. in Accounting is a 30-credit degree program. More credits may be needed if prerequisite

More information

Demographic Information and Additional Survey Responses Not Tabulated in Brown, Call, Clement, and Sharp (2015)

Demographic Information and Additional Survey Responses Not Tabulated in Brown, Call, Clement, and Sharp (2015) -- ONLINE APPENDIX -- Inside the Black Box of Sell-Side Financial Analysts Lawrence D. Brown Temple University ldbrown@temple.edu Andrew C. Call Arizona State University andycall@asu.edu Michael B. Clement*

More information

CFO Commentary on Full Year 2015 and Fourth-Quarter Results

CFO Commentary on Full Year 2015 and Fourth-Quarter Results Intel Corporation 2200 Mission College Blvd. Santa Clara, CA 95054-1549 CFO Commentary on Full Year 2015 and Fourth-Quarter Results Summary The fourth quarter was a strong finish to the year with record

More information

Below are the module descriptions for all modules currently taught on our BA (Hons) Accounting and Finance course.

Below are the module descriptions for all modules currently taught on our BA (Hons) Accounting and Finance course. BA (Hons) Accounting and Finance module descriptions Below are the module descriptions for all modules currently taught on our BA (Hons) Accounting and Finance course. Year One Core Modules Economics for

More information

8/12/2013. Then. Now. Managing risk and compliance. August 14, 2013

8/12/2013. Then. Now. Managing risk and compliance. August 14, 2013 GLOBAL/INTERNATIONAL PAYROLL THE GROUND WORK August 14, 2013 Then Identifying & tracking the assignees Drafting a policy document Implementing a mobility process Deploying an assignment management system

More information

Controls and accounting policies

Controls and accounting policies Controls and accounting policies Controls and procedures Management s responsibility for financial information contained in this Annual Report is described on page 92. In addition, the Bank s Audit and

More information

Objective and General Principles

Objective and General Principles C. PLANNING AND RISK ASSESSMENT 1. Objective and General principles 2. Understanding the entity and its environment 3. Assessing the risks of material misstatement and fraud 4. Analytical procedures 5.

More information

International Corporate Finance Programme ICF

International Corporate Finance Programme ICF International Corporate Finance Programme ICF TABLE OF CONTENTS Programme Structure p. 2 Assessment p. 2 Course Description Statistics & Data Mining p. 2 Business Analytics p. 3 Financial Accounting, Reporting

More information

DISSECTING EVA: THE VALUE DRIVERS DETERMINING THE SHAREHOLDER VALUE OF INDUSTRIAL COMPANIES JOHN H HALL

DISSECTING EVA: THE VALUE DRIVERS DETERMINING THE SHAREHOLDER VALUE OF INDUSTRIAL COMPANIES JOHN H HALL DISSECTING EVA: THE VALUE DRIVERS DETERMINING THE SHAREHOLDER VALUE OF INDUSTRIAL COMPANIES JOHN H HALL Department of Financial Management University of Pretoria Pretoria Republic of South Africa Tel :

More information

EFFECT OF THE SARBANES-OXLEY ACT OF 2002

EFFECT OF THE SARBANES-OXLEY ACT OF 2002 EFFECT OF THE SARBANES-OXLEY ACT OF 2002 August 15, 2002 President Bush signed the Sarbanes-Oxley Act of 2002 (the Act ) into law on July 30, 2002, after numerous business and accounting scandals had rocked

More information

Directors and Officers Liability Insurance Guidance and Advice for Risk Managers

Directors and Officers Liability Insurance Guidance and Advice for Risk Managers Directors and Officers Liability Insurance Guidance and Advice for Risk Managers The insurance market has responded to recent corporate failures by requiring more information from organisations seeking

More information

Reputation Repair: Scott Graffin. Anticipatory Impression Management. University of Georgia

Reputation Repair: Scott Graffin. Anticipatory Impression Management. University of Georgia Reputation Repair: Anticipatory Impression Management Scott Graffin University of Georgia 1 Reputation Repair Maintenance: Anticipatory Impression Management Scott Graffin University of Georgia Reputation-Threatening

More information

ACC COURSES Student Learning Outcomes 1

ACC COURSES Student Learning Outcomes 1 ACC COURSES Student Learning Outcomes 1 ACC 201: Financial Accounting Fundamentals 1. Use accounting and business terminology, and understand the nature and purpose of generally accepted accounting principles

More information

MAN 4720 STRATEGIC MANAGEMENT AND POLICY FORMULATION FINANCIAL ANALYSIS GUIDE

MAN 4720 STRATEGIC MANAGEMENT AND POLICY FORMULATION FINANCIAL ANALYSIS GUIDE MAN 4720 STRATEGIC MANAGEMENT AND POLICY FORMULATION FINANCIAL ANALYSIS GUIDE Revised -December 13, 2011 1 FINANCIAL ANALYSIS USING STRATEGIC PROFIT MODEL RATIOS Introduction Your policy course integrates

More information

UNIVERSITY OF WATERLOO School of Accounting and Finance

UNIVERSITY OF WATERLOO School of Accounting and Finance UNIVERSITY OF WATERLOO School of Accounting and Finance AFM 101 Professor Shari Mann Professor Donna Psutka Professor Mindy Wolfe Mid-Term Examination Fall 2010 Date and Time: October 21, 2010, 6:30 8:00pm

More information

Reporting Implications of New Auditing and Accounting Standards

Reporting Implications of New Auditing and Accounting Standards Reporting Implications of New Auditing and Accounting Standards Issue No. 12 April 2014 Reporting Implications of New Auditing and Accounting Standards ISSUE No. 12 April 2014 This CPA Canada publication

More information

An Examination of Corporate Tax Shelter Participants

An Examination of Corporate Tax Shelter Participants An Examination of Corporate Tax Shelter Participants Ryan Wilson Ph.D. Student University of Washington Business School Box 353200 Seattle, WA 98195 Email: rjwilson@u.washington.edu January 1, 2007 Recent

More information

VISTA GOLD CORP. INSIDER TRADING POLICY

VISTA GOLD CORP. INSIDER TRADING POLICY VISTA GOLD CORP. INSIDER TRADING POLICY (Adopted on December 19, 2003, as amended on March 2, 2009 and March 5, 2013) 1. BACKGROUND AND PURPOSE The federal securities laws of the United States and applicable

More information

China: New Rules on Foreign Investment Through Merger or Acquisition

China: New Rules on Foreign Investment Through Merger or Acquisition China: New Rules on Foreign Investment Through Merger or Acquisition The new Provisions on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (the "New M&A Rules") were promulgated on

More information

Audit Planning and Analytical Procedures

Audit Planning and Analytical Procedures Audit Planning and Analytical Procedures Chapter 8 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 8-1 Learning Objective 1 Discuss why adequate audit planning is essential.

More information

Jonathan A. Milian. Florida International University School of Accounting 11200 S.W. 8 th St. Miami, FL 33199. jonathan.milian@fiu.

Jonathan A. Milian. Florida International University School of Accounting 11200 S.W. 8 th St. Miami, FL 33199. jonathan.milian@fiu. Online Appendix Unsophisticated Arbitrageurs and Market Efficiency: Overreacting to a History of Underreaction? Jonathan A. Milian Florida International University School of Accounting 11200 S.W. 8 th

More information

and Risk Tolerance in an Effective ERM Program

and Risk Tolerance in an Effective ERM Program The Roles of Risk Appetite and Risk Tolerance in an Effective ERM Program Eric Gerner, Risk Advisory Services Director Tuesday, July 10, 2012 General Information Share the webinar Ask a question Votes

More information

Recommended Course Sequence. Pre-MBA Studies

Recommended Course Sequence. Pre-MBA Studies PRE-MBA STUDIES Pre-MBA Studies The Jay S. Sidhu School of Business and Leadership offers a nationally accredited Master of Business Administration program that expands business knowledge, management skills,

More information

Lecture 5 - Financial Planning and Forecasting

Lecture 5 - Financial Planning and Forecasting Lecture 5 - Financial Planning and Forecasting Strategy A company s strategy consists of the competitive moves, internal operating approaches, and action plans devised by management to produce successful

More information

Voluntary Disclosures and the Exercise of CEO Stock Options

Voluntary Disclosures and the Exercise of CEO Stock Options Voluntary Disclosures and the Exercise of CEO Stock Options Paul Brockman * College of Business 513 Cornell Hall University of Missouri Columbia Columbia, MO 65211-2600 Tel: (573) 884-1562 Email: brockmanp@missouri.edu

More information

How to Develop Successful Enterprise Risk and Vendor Management Programs

How to Develop Successful Enterprise Risk and Vendor Management Programs Project Management Institute New York City Chapter January 2014 Chapter Meeting How to Develop Successful Enterprise Risk and Vendor Management Programs Christina S. Kite Senior Vice President Corporate

More information

Tying It All Together: Practical ERM Integration. Richard Scanlon Vice President Enterprise Risk Management CIGNA Corporation

Tying It All Together: Practical ERM Integration. Richard Scanlon Vice President Enterprise Risk Management CIGNA Corporation Tying It All Together: Practical ERM Integration Richard Scanlon Vice President Enterprise Risk Management CIGNA Corporation November 16, 2007 1 Agenda Basis for ERM Integration ERM Objectives ERM Focus

More information

Does an Independent Board Matter for Leveraged Firm?

Does an Independent Board Matter for Leveraged Firm? Does an Independent Board Matter for Leveraged Firm? Dr Janet Lee School of Business and Information Management Faculty of Economics and Commerce The Australian National University Email: Janet.Lee@anu.edu.au

More information

Industry Sound Practices for Financial and Accounting Controls at Financial Institutions

Industry Sound Practices for Financial and Accounting Controls at Financial Institutions Industry Sound Practices for Financial and Accounting Controls at Financial Institutions Federal Reserve Bank of New York January 2006 FINANCIAL AND ACCOUNTING CONTROLS: INDUSTRY SOUND PRACTICES FOR FINANCIAL

More information

AUDITOR INDEPENDENCE, AUDIT COMMITTEE QUALITY AND INTERNAL CONTROL

AUDITOR INDEPENDENCE, AUDIT COMMITTEE QUALITY AND INTERNAL CONTROL Finances - Accounting AUDITOR INDEPENDENCE, AUDIT COMMITTEE QUALITY AND INTERNAL CONTROL WEAKNESSES Prof. Sorinel Domni oru Ph.D Assist. Sorin-Sandu Vîn toru, PhD Student University of Craiova Faculty

More information

Fraud Checklist. From the enquiries made and procedures performed in completing Part B of this checklist we consider the risk of irregularities to be

Fraud Checklist. From the enquiries made and procedures performed in completing Part B of this checklist we consider the risk of irregularities to be Fraud Checklist Client Name Disclosing entity Prepared by Reviewed by Partner review Balance Date Close Monitoring Date Date Date How to use this checklist An initial assessment of the risk that irregularities

More information

DETECTION OF CREATIVE ACCOUNTING IN FINANCIAL STATEMENTS BY MODEL THE CASE STUDY OF COMPANIES LISTED ON THE STOCK EXCHANGE OF THAILAND

DETECTION OF CREATIVE ACCOUNTING IN FINANCIAL STATEMENTS BY MODEL THE CASE STUDY OF COMPANIES LISTED ON THE STOCK EXCHANGE OF THAILAND Abstract DETECTION OF CREATIVE ACCOUNTING IN FINANCIAL STATEMENTS BY MODEL THE CASE STUDY OF COMPANIES LISTED ON THE STOCK EXCHANGE OF THAILAND Thanathon Chongsirithitisak Lecturer: Department of Accounting,

More information

U S I N G D A T A A N A L Y S I S T O M E E T T H E R E Q U I R E M E N T S O F R I S K B A S E D A U D I T I N G S T A N D A R D S

U S I N G D A T A A N A L Y S I S T O M E E T T H E R E Q U I R E M E N T S O F R I S K B A S E D A U D I T I N G S T A N D A R D S U S I N G D A T A A N A L Y S I S T O M E E T T H E R E Q U I R E M E N T S O F R I S K B A S E D A U D I T I N G S T A N D A R D S A C a s e W a r e I D E A R e s e a r c h R e p o r t CaseWare IDEA Inc.

More information

Definitions of Earnings Quality Factors

Definitions of Earnings Quality Factors Definitions of Earnings Quality Factors 1. Total Accruals to Total Assets: A company s reported earnings are made up of cash received and changes to accrual accounts and thus a company s earnings will

More information

Fundamental analysis

Fundamental analysis Fundamental analysis 2 June 2016 CERN Finance Club c.laner@cern.ch Introduction Let s cover the two main types of investment analysis used in traditional investing Today: Fundamental analysis Next time:

More information

FI3300 Corporation Finance

FI3300 Corporation Finance Learning Objectives FI3300 Corporation Finance Spring Semester 2010 Dr. Isabel Tkatch Assistant Professor of Finance Explain the objectives of financial statement analysis and its benefits for creditors,

More information

CHAPTER 14: THE ROLE OF ACCOUNTANTS AND ACCOUNTING INFORMATION

CHAPTER 14: THE ROLE OF ACCOUNTANTS AND ACCOUNTING INFORMATION CHAPTER 14: THE ROLE OF ACCOUNTANTS AND ACCOUNTING INFORMATION I. What Is Accounting and Who Uses Accounting Information? Accounting is a comprehensive system for collecting, analyzing, and communicating

More information

Restated Consolidated Financial Statements as at December 31, 2011

Restated Consolidated Financial Statements as at December 31, 2011 Restated Consolidated Financial Statements as at December 31, 2011 (including the adjusted adidas AG Opening Consolidated Statement of Financial Position (IFRS) as at January 1, 2011) This excerpt from

More information

UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION

UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 58605 / September 19, 2008 ACCOUNTING AND AUDITING ENFORCEMENT Release No. 2882 / September

More information

Finding the GAAP in FCPA Enforcement: Challenges in Identifying the Impact of Alleged Bribery in Financial Statements

Finding the GAAP in FCPA Enforcement: Challenges in Identifying the Impact of Alleged Bribery in Financial Statements 13 May 2013 Part I of a NERA Accounting Insights Series Finding the GAAP in FCPA Enforcement: Challenges in Identifying the Impact of Alleged Bribery in Financial Statements By Raymund Wong, CFA, CPA,

More information